Strategic Human resource management is a permanent proactive planning by the Human Resource department on how organizational goals and missions will be achieved by the method of its work force resources. This essay is dependant on Strategic Human Resource Management theories and practices as a requirement of our Human Resource Management unit HR633. For this assignment Baa & Bar restaurant has been chosen where the interrelationship between human resource management and Baa & Bar restaurant's environment will be evaluated and discussed. The definition provided by Michael Armstrong and Long (1994) is discussed alongside the matching model by Devanna, Fombrun and Tichy (1984) is also discussed. The relationship between these theories, ideas and model are evaluated with the context of Baa & Bar restaurant current practice and philosophies.
Human resource management is about management of people whatsoever levels in the organizational structure in order to attain an competitive advantage over other business with the aid of implementing their own HR policies and practices that happen to be in alignment using their goals and missions of the organization. Armstrong and Long expand the thought of Walker who defined strategic recruiting management as "the method of piecing together the management of recruiting with the strategic content of the business enterprise" HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM permits employees to contribute effectively and productively to the entire company direction and the accomplishment of the organization's goals and objectives (About. com, 2014).
- Baa & Bar
The corporate mission of Baa & Bar restaurant is usually to be well - named one of the very best "A" grade family restaurant in both its local and International tourist market. (Personal communication: Mr Sohal, S. , 4th July, 2014)
- To train and develop current employees in response to equip them with the changing trends and markets for effective and efficient customer service deliverance
- To deliver a safe and secure working environment to its employees
- To be in alignment with the organizational goals and mission
- To promote fair and equal employment chance of all people despite their race, culture, religion and gender of people
- Adhere to fair selection process for new recruitment
- To stick to the minimum wage rate because of its employees regardless of the race, culture, religion, or gender
This department is responsible overall management of human resources who have emerged as the largest asset for any organization's success. The HR department is accountable for staff recruitment, training them effectively, developing them and allocating them with their respective duties. Their strategies have to be in complete alignment with the mission and goals of the restaurant. They find the right person with the right job at the right amount of time in right number through training and developing them through organizational training and workshops in order to accomplish efficiency and effectiveness in every other departments of the organization. They are really main responsibility is to recruit, develop, use and maintain the employees of the restaurant as there's a shortage of employee loyalty and employee come in the restaurant to gain workforce experience and leave for better opportunities. Therefore to place a measure to the problem the HR department of Baa & Bar restaurant has formulated a written contract outlining the Baa & Bar restaurant's policies and practices that employees need to adhere while doing work for the restaurant. The new employees that are recruited to be positioned on a 90 days probation period to show the restaurant their ability and functions and as a means that presents the restaurant they are the people for that position. Furthermore the contract restricts employees from leaving the company without giving the restaurant time to advertise, recruit and train another replacement for that position. All the employees are provided with basic training in all spheres of the restaurant duties so that when the necessity arises to cover up or switch positions for another employee due to absenteeism or if any emergency arises, they have got the data and are equipped to handle of those responsibilities efficiently (Scribd. com, 2014).
Baa & Bar restaurant is a family group owned small restaurant run by Mrs Sunaina khan as CEO and Mr Sohail Khan as the Manager /Human Resource Manager and Mr D. Patel as the Supervisor/floor Manager/Human Resource officer for the restaurant. It includes other ten kitchen employees. The structure of baa & bar restaurant has four levels, upper most is the CEO, second level is the Manager, third level is the human resource manager and at the bottom level are all your kitchen employees. The HR department is managed by the floor manager and the restaurants manager. All HR planning and strategies are formulated at the 3rd degree of the organizational structure Mr. Patel who carry out the planning process and forward it to the upper level, to the manager and CEO, for the ultimate approval for all those Human resource issues. Therefore the HR department has formulated some internal policies for his or her human resource requirements. The department has formulated yearly proactive plans to cater for the increased production and so that work flow in the restaurant is continuous and does not stop due to shortage of staff. Every year the restaurant allocates certain levels of profit for Human resource development for current employees and recruiting new employees depending on the requirements of the yearly projects. Each year the restaurant allocates a budget of $100, 000 for its HR department from which the depart allocates $55000 for everyday 3 to 5 5 new employee that are recruited each year through the summer for two months, mid November to mid January, when it's the peak season for the restaurant due to general public holidays and influx of heavy tourist market. The department advertises on the seek website, Baa & Bar restaurants official website and in restaurant's fortnightly newsletter. At times in addition they outsource to Frog recruitments to get everyday labors on short notices (About. com, 2014).
HR department formulates an action plan for its department as a measure to attain their outlined projects and goals in order to achieve their organizational goals and mission. HR works in accordance with the restaurants mission and goals and also have employees lined up to squeeze in when the necessity arises so that the procedures of the restaurants day to day activities do not stop.
The HR department of Baa & Bar restaurant become the chain agents for the change as the change arises. The HR manager and the restaurants manager interact together, educating, developing, motivating, supporting, coaching and training the employees beforehand and during the transition period so that employee are well prepared and equipped for the change. FOR INSTANCE, the main one of the outlined goals for 2014 is to expand the Baa & Bar restaurant's current sitting arrangement to a new outside courtyard dining to mark the restaurant's 10th birthday on 23rd of November. The CEO, the Manager and HR Manager together with other department managers, had a meting with leading line employees and the kitchen staff and advised them about the look and what strategies the managers will conduct in order to attain the success of the project. They were also explained why the restaurant needs to expand and what is expected from the employees and how it will affect them. These were further explained about how their current role will change. The HR department came up with the idea how to cater for the increased employee requirements and resources as the task load will increase dramatically. The HR came up with the action plan how to cater for the increased work load. It offers made provisions to recruit 5 new employees, 3 new waiters and 2 new kitchen hands to help in the kitchen. It has also made provision to send the prevailing waitresses and the bar tenders to wait workshops organized internal by outside representatives and also appeal to further developments for kitchen hands and chefs to upgrade their skills and attain further education in their respective positions at the restaurants expenses (About. com, 2014).
2. 0. Policies and practices with regards to Devanna, Fombrum and Tichy
The Matching Model
According to Devanna, Fombrum and Tichy, (1984) Human resource management will be the operational plans of the organization that focus on the strategic plans and are conducted by the most notable level people in the organizational structure. It further defines that the organizational mission and strategy should be entwined together with the human resource policies and practices like job designing, employee training and development etc. so that they are in regular flow with each other in order to attain the organizational missions and strategies.
Human resource management department must scan the external forces that effect the business at whole. The external forces are political, cultural and monetary forces. Political forces are the laws, legislations and policies positioned by the New Zealand government and ministry of labor such as organizational health and safety regulations which Baa & Bar restaurant need to abide by by any means circumstances and average wage regulations, taxation, IRD deduction, child labor, illegitimate employment etc. such laws are located by the concerned authorities in order to standardize the neighborhood workforce by safeguarding the employee as well as the restaurants interest. So that it effects the human resource management of the Baa & Bar restaurant where it has to base it's employee salary, benefits, etc. in consideration and then decide the numeration packages for them. It also has to place internal policies and practices to ensure that OHS regulations are adhered by all employees whatsoever time. It must provide proper equipment and gear for the kitchen staff and send them to proper training on what to do in case there is emergencies like fire, food poisoning. All employees have to undergo proper food handling and hygiene courses before they start their new jobs at the expense of the restaurant. Such regulations put constrains on the human Resource management budgets thus increasing the expenses of the restaurant. Therefore, the HR department has to keep updated with the new policies and regulations to become in aligning with the New Zealand's law and order as the government has placed a severe consequences for being infringement if found the restaurant could even be ceased from operating (Scribd, Inc. , 2014)
Social forces have influence on HR management because the sort of background that employees result from defines their work ethics, behavior, and attitudes towards their role in the restaurant. It also defines their level of commitment and duties they display in their performances. An employee's attitude towards their present and future personal goals defines them as where they would like to maintain their career which shows their attitude towards their work. It also highlights the backdrop from which they result from and how they will interact and behave with other employees therefore HR regulations need to provide certain guidelines and principles that employees need to adhere to to reduce conflicts (Scribd, Inc. , 2014)
Human resource management also has to pay emphasis on the economical forces of the restaurant because the economy of any nation either it's suffering a recession period or growth; it will define the option of its people's education and health which simultaneously have a significant influence on the available labor workforce. Therefore recruitment, selection and placement and health in the restaurant will be influenced and must be studied in consideration while making HR policies for the restaurant. The restaurant needs employees who are able to work up with their maximum capabilities. A growth in the economy means that the people have the ability to afford higher education and qualifications which the restaurant can utilize to its maximum in their respective tasks into the achievement of the organizational mission (Scribed. Inc. , 2014). Likewise competition also impacts the HR policies as and increase in competition increases the dependence on the restaurant to retain their key employees with more benefits and renumuration as the demand on their behalf increases.
3. 0. Human resource contribution to organizational strategy and planning
Human resource management and planning emphasis on scanning the existing human resource and forecasting for his or her future need in order to cater as the need arises. The HR department assesses the employee performance, education, qualification and skills with the current roles and examine if indeed they match and compliment one another or not with the means of staff appraisal and performance measure on every six months basis. The employees who are no performing at their expected level receive six months to progress on their performance and by the end of the year all employees are rewarded with bonus in accordance with their performance. Accordingly the HR department rearranges the structure by regrouping duties to build more positions vice versa which is more favorable towards accomplishment of the restaurants mission and goals. The HR department provides on job training because of its new recruits and additional development opportunities to be aligned with the current trending skills and qualifications as the restaurant sees its loyal employees as asset to the organization and their updating developments provides a competitive edge because of its competitors. It believes that whatever they devote to staff development will be reaped by the restaurant and help the restaurant to equip it better using its competitors and in exchange will benefit in increase in profit level. Furthermore HR department must recruit only those candidates who are best equipped with the mandatory skills and qualifications and features that suits that specific position (Scribed, Inc. 2014).
The problem with the Baa & Bar Restaurant's human resource policy and practice is that the policies and practices that are formulated is from the most notable level management and there is no provision for lower level employee involvement and insight from them as they are the ones who are damaged by all the policies. The human resource department needs to make provision for an employee representative that can act on behalf of the employees of the restaurant to be able to get their support and involvement when formulating HR policies and practices.
Human Resource Management and Planning involves taking measures and equipping the human resource of the organization for their current and future opportunities in obtaining the organization's missions and goals by formulating and updating respective policies and practices. Policies and strategies are formulated to be able to set a good and justified standards for recruitment, training and developing, redundancy process. The HR department must scan its external environments in order to be aware of their impact on the organization's labor force.
About. com, (2014). Human resource. Retrieved from http://humanresources. about. com/od/hrbasicsfaq/a/hr_onestop. htm
Armstrong, M. and Long, P. (1994). The reality of Strategic HRM. Institute of Personnel and development. London.
Devanna, M. A, Fombrun, C. J. and Tichy, N. M. (1984). A framework for Strategic Human Resource Management, in Fombrun et al. (eds), Strategic Human Resource Management, New York, John Wiley.
Scribed, Inc. (2014) External factors affecting human resource management. Retrieved from https://www. scribd. com/doc/43375780/External-factors-affecting-human-resource-management-HRM